A man is in custody after a pair of suspicious fires overnight in Charlottetown.

Just before 2 a.m. Monday, police on patrol happened to come across a fire in a lot off Mount Edward Road, where they discovered a cube van on fire in the middle of the Ultramar compound.

Charlottetown police say the suspect then tried to set a wooden building on fire. Inside, there are oil barrels and home heating equipment.

Because Ultramar uses the site to dispense home heating oil, police believe the fires could have been a whole lot worse.

"The potential for the fire to get out of hand is there, because there are several buses, there's a petroleum depot right in the general area, and a couple of car dealerships. So there was potential for more damage to be done," said Deputy Chief Gary McGuigan.

Police say after setting the fires, the suspect jumped the fence onto the Trius Tours bus compound. Trius staff say he broke into one of the buses.

Charlottetown Police later arrested a man they believe may have started the fire. Police are still interviewing the suspect, and no charges have been laid.